If you’ve searched for debt help online, there’s a good chance you’ve seen ads promising fast relief, expert support, or government-backed solutions.
What many Canadians don’t realize is that some of these ads are illegal.
Across Facebook and Instagram, unlicensed debt advisors are using paid advertising to target people in financial distress. These ads often look official, claim to offer services they’re not legally allowed to provide, and charge fees for help that should be free through a Licensed Insolvency Trustee.
This blog explains what’s happening, why it matters, and why illegal debt-relief ads are still running, despite clear warnings from federal regulators and repeated outreach to Meta.
Jump to:
- Unlicensed debt-relief ads are targeting Canadians on Facebook and Instagram
- Why these debt-relief ads are illegal under Canadian law
- Why Meta is still allowing illegal debt-relief advertising in Canada
- Why Canadian regulators can’t shut down illegal debt ads at the source
- How illegal debt-relief advertising harms consumers, creditors, and the insolvency system
- How Google handles debt-relief advertising more responsibly than Meta
- What needs to change to stop illegal debt-relief ads in Canada
- What Canadians should know before responding to debt-relief ads online
Unlicensed debt-relief ads are targeting Canadians on Facebook and Instagram
Unlicensed debt advisors are using paid advertising on Meta platforms, including Facebook and Instagram, to promote debt-relief services they are not legally allowed to offer in Canada.
In many cases, these firms:
- Present themselves as legitimate insolvency professionals
- Suggest they can handle Consumer Proposals or bankruptcy filings
- Charge fees for services that are legally required to be free when provided by a Licensed Insolvency Trustee
The result is that Canadians in financial distress are being misled into paying for help they never needed to pay for in the first place.
In 2023 alone, Canadians paid or agreed to pay almost $20 million to unregulated debt advisors. The Office of the Superintendent of Bankruptcy (OSB) has said the real number is likely even higher.
Why these debt-relief ads are illegal under Canadian law
This is not a gray area.
Since 2023, the OSB issued multiple warnings, including a national scam alert and enforcement updates. These warnings highlighted how some debt advisors falsely present themselves as Licensed Insolvency Trustees, claim they can administer Consumer Proposals, and use misleading advertising to target Canadians in financial distress.
Both the OSB and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) have been clear: Canadians do not need to pay third-party consultants to access insolvency relief. Consumer Proposals and bankruptcies can only be administered by a Licensed Insolvency Trustee, and initial consultations are legally required to be free.
Why Meta is still allowing illegal debt-relief advertising in Canada
This isn’t something Harris & Partners has raised once and moved on from.
Over the past year, Joshua Harris—CIRP, LIT, CEO of Harris & Partners—has repeatedly tried to raise concerns directly with Meta about illegal debt-relief ads appearing on Facebook and Instagram. That outreach included sharing live examples of the ads, links to active campaigns, and federal guidance explaining why these services cannot be advertised by unlicensed firms.
There was one phone call more than a year ago in which Meta acknowledged that this type of advertising should not be allowed. Since then, follow-up messages have gone unanswered, and the same kinds of ads continue to run.
“This has been raised directly, professionally, and persistently. The failure is not a lack of information. It is a lack of action.”
— Josh Harris, CIRP, LIT
Why Canadian regulators can’t shut down illegal debt ads at the source
While regulators have increased enforcement efforts, their powers are limited.
The OSB does not have the authority to remove ads, shut down advertising accounts, or stop platforms from monetizing illegal debt-relief services.
Instead, it has been forced to act indirectly by investigating Licensed Insolvency Trustees, launching professional conduct reviews, and applying pressure within the regulated system.
This approach has led to some closures and enforcement outcomes. However, many bad actors simply rebrand and return under new names, using the same advertising channels to reach the same vulnerable audiences.
As of August 2025, the OSB reported:
- Ongoing professional conduct investigations into 32 individual LIT licenses
- Reviews involving 13 corporate trustee firms
- Criminal referrals and successful convictions in related cases
- Two class-action lawsuits against debt advisory firms that resulted in settlements
Despite this, unlicensed debt-relief ads continue to appear across Meta platforms.
How illegal debt-relief advertising harms consumers, creditors, and the insolvency system
The harm caused by illegal debt-relief advertising goes far beyond the individuals who pay unnecessary fees.
These ads undermine Canada’s regulated insolvency system, distort legitimate processes, and damage trust in licensed professionals. They also harm creditors by interfering with lawful insolvency proceedings and delaying proper resolution.
Most importantly, they exploit people at their most vulnerable moments—when fear, urgency, and financial stress make misleading promises especially dangerous.
“When federal regulators, industry bodies, and licensed professionals are aligned and escalating, but the advertising platform continues to monetize the same behavior, that is where the system breaks down.”
— Josh Harris, CIRP, LIT
How Google handles debt-relief advertising more responsibly than Meta
Harris points to Google as an example of a more responsible approach to debt-relief advertising.
Google now requires advertisers offering insolvency-related services to verify their licensing status before ads can run. While not perfect, this safeguard has reduced the visibility of unlicensed operators.
Meta, by contrast, has not implemented similar protections in Canada, allowing the same types of misleading ads to continue appearing across its platforms.
What needs to change to stop illegal debt-relief ads in Canada
Harris is calling on Meta to publicly explain why repeated warnings, regulatory guidance, and direct outreach have failed to result in meaningful enforcement.
He is also urging the platform to outline what concrete steps it will take to prevent illegal debt-relief advertising from targeting Canadians going forward.
This issue is not about competition within the insolvency profession. It is about consumer protection, regulatory integrity, and preventing harm to people who are already under financial strain.
What Canadians should know before responding to debt-relief ads online
If you are struggling with debt, there is one critical thing to remember: you do not need to pay a third party to access legitimate debt relief in Canada.
If you are considering a Consumer Proposal or bankruptcy, you can speak directly with a Licensed Insolvency Trustee. Consultations are confidential, regulated, and legally required to be free.
Harris & Partners has been helping Canadians find their way out of debt since the 1960s, with offices in nine provinces. Our role is to provide clear, regulated advice—not to sell fear or charge unnecessary fees.
If an ad feels misleading or a “debt advisor” is asking for upfront payment, trust that instinct. Legitimate help is available without cost, pressure, or false promises. Call today on 800-268-8093 to get started.
